Question
A manufacturer currently prices its product at 10 $. per unit. Last year, the manufacturer sold 60.000 units. The variable cost per unit is 6
A manufacturer currently prices its product at 10 $. per unit. Last year, the manufacturer sold 60.000 units. The variable cost per unit is 6 $. . Total fixed costs are 120.000 $. . The manufacturer intends to increase sales by 5%. Current accounts receivable collection period is 30 days. If the manufacturer wants to relax its credit standards, the expectation is that bad debt expenses will increase from 1% of sales to 2% of sales. The opportunity cost of investing in accounts receivables is 15%. In order to benefit from relaxing its credit standards, what would be the expected maximum accounts receivable collection period? (Assume that existing customers are not expected to alter their payment habits. 1 year = 365 days)
82,38 days
63,33 days
105,82 days
63,73 days
Other:
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